SiriusXM and Liberty Media Corporation have officially revealed a merger deal that will bring together SIRIUS XM and Liberty Media’s Liberty SiriusXM tracking stock group.
This move is designed to streamline ownership, as Liberty Media’s tracking stock group already held a stake in SiriusXM.
The merger solidifies SiriusXM’s position in the audio entertainment industry, particularly in cars, where it boasts the largest paid share-of-ear. As part of the agreement, SiriusXM will continue operating under its well-known brand name.
This development follows SiriusXM’s recent announcement of a rebuilt app and satellite service, signaling a commitment to staying at the forefront of the evolving audio entertainment landscape.
Greg Maffei, Liberty President & CEO, expressed optimism about the merger, stating, “This combination will create value for all stockholders by eliminating the tracking stock structure, enhancing liquidity and allowing former LSXM stockholders to participate directly in the ongoing performance of SiriusXM.”
Jennifer Witz, Chief Executive Officer of SiriusXM, commented on the significance of the deal, saying, “We are pleased that the Special Committee of our Board of Directors has reached this agreement with Liberty Media, which will allow SiriusXM to enter its next phase of value creation.”
One key outcome of this merger is the formation of a New SiriusXM as an independent public company. This entity will have no majority stockholder, a single class of shares, and a board composed of a majority of independent directors.
This structural change is expected to provide greater strategic flexibility and independence for SiriusXM. Additionally, the move is anticipated to furnish the company with additional cash on hand.
The objective behind creating the new independent public company is to drive long-term growth and stockholder value creation.
SiriusXM, with its profitable business model, aims to capitalize on its strong foundation and the recent revamp of its platform to sustain success in the highly competitive audio entertainment industry.
As the deal progresses, it marks a crucial milestone in Liberty’s ownership of SiriusXM, with both parties expressing confidence in the continued success and profitability of SiriusXM as it evolves into this new phase.
